David Biggin, a financial services expert at PA Consulting, discusses reporting in the post-Brexit regulatory framework.
The article talks about FCA adopting a broader outcomes-based approach and is even questioning disclosure levels. Much, however, will become clearer after the general election on 12 December.
The article goes on to say that disclosure has been a solution for many years, however new research suggests that its impact is limited. Cost effectiveness should be taken into account, otherwise reporting becomes an issue.
David says: "I think that remark stems from the fact that regulatory reporting has been found to be incorrect and highly inflexible and essentially designed to address an issue that was present at the point of the rules being drafted and not necessarily being future-proofed to answer questions around future developments".
David added that this could lead to the regulator making more use of available financial data and using it in creative new ways.